A note on local spillovers, convexity, and the strategic substitutes property in networks

We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise equilibrium networks.     

CEO characteristics and firm valuation: a quantile regression analysis

This study investigates the effects of three highly-visible CEO characteristics on firm valuation. Using a sample of 2702 observations for Australian firms over the period 2001–2011, we find that CEO age is uniformly associated with lower firm valuation. CEO tenure is also associated with lower valuation, but more significantly so in the higher quantiles of firm valuation, that is for firms with high-growth opportunities. In contrast, CEO duality is found to be beneficial only for firms with high-growth opportunities. Overall, the study highlights the contingent relationship between CEO characteristics and firm valuation.     

Selection of regressors in econometrics: parametric and nonparametric methods selection of regressors in econometrics

The present paper addresses the selection-of-regressors issue into a general discrimination framework. We show how this framework is useful in unifying various procedures for selecting regressors and helpful in understanding the different strategies underlying these procedures. We review selection of regressors in linear, nonlinear and nonparametric regression models. In each case we successively consider model selection criteria and hypothesis testing procedures.     

Modeling resource flow asymmetries using condensation networks

This paper examines strict Nash networks in the noncooperative directed flow model of Bala and Goyal (Econometrica 68(5):1181–1230, 2000) with partner heterogeneity (payoff of a player in a link depends on the identity of her link partner). We focus on the asymmetries with regard to the resources obtained by players. Using the notion of condensation networks, we partition the population into groups of players who obtain the same resources and order these groups according to the resources they obtain. We show that the partner heterogeneity assumption impacts the strict Nash networks asymmetries in a different way than Galeotti (Econ Theory 29(1):163–179, 2006) player heterogeneity assumption (the payoff of a player in a link depends on her own identity).     

Regulating product markets: a growing challenge for open economies – with special references to agro-food product markets

In the present phase of internationalisation, processes of social construction of product markets are under stress. On one hand, the internationalisation of production processes gives more room for manoeuvre to the producers. On the other hand, the development of scientific technologies, embedded with new risks and uncertainties, makes it difficult to control the quality of products and production processes. The drive for competitiveness in a world where only free trade arguments seem to be heard limits the willingness of individual countries to take action. International institutions have been unable to launch the international co-ordination that could have helped countries to get out of this deadlock, though they need to fight climate change and pollution as well as the pressing new environmental hazards, which are illustrated with the case of the agro-food product markets in Europe. They should foster international processes of social construction of product markets to learn how to strike a better balance between free trade and safe trade principles before it is too late.     

Varying-Coefficient Functional Linear Regression Models

This article considers a generalization of the functional linear regression in which an additional real variable influences smoothly the functional coefficient. We thus define a varying-coefficient regression model for functional data. We propose two estimators based, respectively, on conditional functional principal regression and on local penalized regression splines and prove their pointwise consistency. We check, with the prediction one day ahead of ozone concentration in the city of Toulouse, the ability of such nonlinear functional approaches to produce competitive estimations.     

The Estimation and Testing of the Cointegration Order Based on the Frequency Domain

ABSTRACT

This article proposes a method to estimate the degree of cointegration in bivariate series and suggests a test statistic for testing noncointegration based on the determinant of the spectral density matrix for the frequencies close to zero. In the study, series are assumed to be I(d), 0 < d ? 1, with parameter d supposed to be known. In this context, the order of integration of the error series is I(d ? b), b ∈ [0, d]. Besides, the determinant of the spectral density matrix for the dth difference series is a power function of b. The proposed estimator for b is obtained here performing a regression of logged determinant on a set of logged Fourier frequencies. Under the null hypothesis of noncointegration, the expressions for the bias and variance of the estimator were derived and its consistency property was also obtained. The asymptotic normality of the estimator, under Gaussian and non-Gaussian innovations, was also established. A Monte Carlo study was performed and showed that the suggested test possesses correct size and good power for moderate sample sizes, when compared with other proposals in the literature. An advantage of the method proposed here, over the standard methods, is that it allows to know the order of integration of the error series without estimating a regression equation. An application was conducted to exemplify the method in a real context.